Mellanox Announces Third Quarter Financial Results
SUNNYVALE, Calif. & YOKNEAM, Israel -- Mellanox Technologies, Ltd. (NASDAQ:MLNX) today announced financial results for its third quarter ended September 30, 2017.
“We are pleased to achieve a record revenue quarter and resume our growth. Our third quarter Ethernet revenues achieved double digit sequential growth, driven by increasing deployments of our 25 gigabit per second and above products, which demonstrates our leadership position in these markets,” said Eyal Waldman, President and CEO of Mellanox Technologies. “During the third quarter, InfiniBand revenues declined seven percent sequentially mainly due to a large Department of Energy CORAL deployment in the second quarter. On a year-over-year basis, our InfiniBand high-performance computing and artificial intelligence revenues increased by double digit percentages. We believe Mellanox is well positioned to meet our customers’ expanding performance needs with the introduction of multiple new products. We see multiple growth engines for our Ethernet and InfiniBand products.”
Third Quarter 2017 - Highlights
- Revenues of $225.7 million increased 0.7 percent, compared to $224.2 million in the third quarter of 2016.
- GAAP gross margins of 65.7 percent, compared to 65.1 percent in the third quarter of 2016.
- Non-GAAP gross margins of 70.7 percent, compared to 71.8 percent in the third quarter of 2016.
- GAAP operating income was $6.6 million, compared to $14.5 million in the third quarter of 2016.
- Non-GAAP operating income was $38.5 million, or 17.1 percent of revenue, compared to $49.2 million, or 22.0 percent of revenue in the third quarter of 2016.
- GAAP net income was $3.4 million, compared to $12.0 million in the third quarter of 2016.
- Non-GAAP net income was $36.6 million, compared to $46.2 million in the third quarter of 2016.
- GAAP net income per diluted share was $0.07, compared to $0.24 in the third quarter of 2016.
- Non-GAAP net income per diluted share was $0.71, compared to $0.93 in the third quarter of 2016.
- $53.0 million in cash was provided by operating activities, compared to $43.8 million in the third quarter of 2016.
- Cash and investments totaled $346.2 million at September 30, 2017, compared to $328.4 million at December 31, 2016.
Fourth Quarter 2017 Outlook
We currently project:
- Quarterly revenues of $230 million to $240 million
- Non-GAAP gross margins of 69 percent to 70 percent
- Non-GAAP operating expenses of $125 million to $127 million
- Share-based compensation expense of $18.3 million to $18.8 million
- Non-GAAP diluted share count of 51.7 million to 52.2 million
Mellanox will hold its third quarter 2017 financial results conference call today, at 2 p.m. Pacific Time, to discuss the company’s financial results. To listen to the call, dial 1-866-831-8713, or for investors outside the U.S., +1-203-518-9713, approximately 10 minutes prior to the start time.
The Mellanox financial results conference call will be available via live webcast on the investor relations section of the Mellanox website at: http://ir.mellanox.com. Access the webcast 15 minutes prior to the start of the call to download and install any necessary audio software. A replay of the webcast will also be available on the Mellanox website.
Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage. Mellanox interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability. Mellanox offers a choice of fast interconnect products: adapters, switches, software, cables and silicon that accelerate application runtime and maximize business results for a wide range of markets including high-performance computing, enterprise data centers, Web 2.0, cloud, storage and financial services. More information is available at www.mellanox.com.